Joint account question

[lisarc]

What is the name of your state (only U.S. law)? VA
I have a judgement against me. I am working with the company to effect a settlement. The creditor's attorney served my bank with a notice of garnishment hearing for Dec 2. My bank has put a hold on my account for the entire judgement amount even though there is not enough in my account to cover it. This is a joint account and they have not notified my husband - like VA law requires. What recourse do I have, and it it legal for them to "hold" an amount above what is available?

[Wirelessany1]

Originally Posted by lisarc

What is the name of your state (only U.S. law)? VA
I have a judgement against me. I am working with the company to effect a settlement. The creditor's attorney served my bank with a notice of garnishment hearing for Dec 2. My bank has put a hold on my account for the entire judgement amount even though there is not enough in my account to cover it. This is a joint account and they have not notified my husband - like VA law requires. What recourse do I have, and it it legal for them to "hold" an amount above what is available?

This all seems perfectly legal to me. What makes you think they have to notify your husband about their action? That would be your job.

Your recourse is to attend the hearing set for you in December 2nd.

This document might prove to be quite informational if nothing else.
[url]http://www.lsnv.org/Garnishment_Exemption_Wages_Accounts.pdf[/url]

[lisarc]

The following from the Virginia Code for banking is what led me to believe that they had to notify my husband. My husband is fully aware of this judgement since we are also fighting an identity theft situation in conjunction with it.
I also have a letter from the creditors attorney accepting the terms of the settlement. I am the only one named on the judgement, not him.
I also read this to say that they can hold any existing funds, but not that they can overdraw my account.
[url]http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+6.1-125.3[/url]
D. Upon an order of garnishment, attachment or other levy addressed to a party to a joint account as mentioned in subsection A, or a trust account as mentioned in subsection C, the financial institution shall file an answer setting forth the form of account, whether it has funds responsive to the process, and such information as it has as to the names and addresses of the parties to the account. The financial institution shall by first-class mail send a copy of such answer to the petitioning creditor or counsel of record. From the time of service of such garnishment, attachment or levy, the financial institution shall hold the amount subject to such garnishment, attachment or levy, or such lesser amount or sum as it may have, which amount shall be set forth in its answer. It shall not permit any person to draw against such amount whether by check against such account or otherwise. If the petitioning creditor shall desire to pursue the question of ownership of such funds held subject to the claim of two or more parties to the deposit account, it shall provide the clerk with a copy of the documents originally served on the original defendants or judgment defendants and request the clerk to issue a summons accompanied by such copy with a copy of the notice at the end of this subsection. Upon payment of the appropriate fees, the clerk shall issue such summons to be served on such other party having an interest or apparent interest in such account. Service on a party to the account made at the address on record at the financial institution shall be presumed to be proper service for the purposes of this section. In addition, a copy of such summons and notice will be issued and served on or mailed to both the financial institution and the original defendant or judgment debtor. If such summons is received either by certified or registered mail or acknowledged in writing within twenty-one days on or by such financial institution, it shall continue to hold such funds pending further order of the court. If such financial institution shall not within twenty-one days from the filing of such answer be served with or acknowledge such an order, it may treat the garnishment, attachment or levy, insofar as it relates to such joint or trust accounts, as terminated on the twenty-second day and being of no further force or effect. The court shall allow the financial institution its reasonable expenses in responding to discovery of its records and may condition any such discovery upon prepayment of such expenses. The notice to the co-depositor described in this subsection shall contain substantially the following information: "Attached is a copy of the documents served on a financial institution to cause it to withhold money from an account in which you may have an interest. If you wish to protect your interests, you or your attorney should take appropriate legal action promptly."

[Wirelessany1]

Then wait patiently in the mail for a copy of the order to be sent to your husband by the bank (7-10 business days is reasonable).

It appears that the bank is holding the complete amount requested in the writ - they are allowed to do that. At the time they receive the request to disburse the funds, they will only take what funds you have available, less their fee.

Having said this, all subsequent deposits to this account will be held.

[nrknlknek]

Trust me, they'll serve notice on your husband. This is a very perfunctory post judgement proceding. However, you may have (a) defenses and/or (b) exemptions to which you may be entitled under VA law which is one reason why I consistantly counsel OP(s) on this forum to consult with an attorney even though I realize they are on this forum to obtain free advice. You have a judgement against you. This is a serious matter with potentially life altering implications. If there ever was a reason to engage a competent attorney, this is it!